How do I rebuild my credit rating after a bankruptcy in St. Catharines?

There is no magic fix to rebuild your credit rating after filing bankruptcy. Slow and deliberate action must be taken to gain positive reportings on your credit report that will then improve your credit score. You must also be cautious about applying for credit if you have concerns about qualifying. Being rejected for credit will further negatively impact your credit score.

Several tips to improve your credit rating after filing for bankruptcy in St Catharines:

• Accumulate savings and then apply for a secured credit card. You will need to save $500 – $1,000 to provide as security and will then be granted a credit card with the same limit.
• If you made monthly payments to your trustee during your bankruptcy, set aside those excess funds in savings until you have the funds for the deposit.
• Invest the time in researching different secured credit cards that are available from your bank or other lending institutions. The annual fees and interest rates will fluctuate, and since you intend to pay the debt in full each month, I recommend the lower annual fee.
• Put your groceries and gas on your credit card every month and pay the balance in full by the due date. You should have developed a budget during your credit counselling sessions, so you are comfortable charging your groceries and knowing you have the funds to pay the balance when due.
• Utilize 30% of your credit limit. Do not max out your credit card every month.
• Pay your bills on time. Cell phone providers typically report to the credit bureaus, so make sure you pay on time every month.
• Once you have used a secured credit card for a year or so, talk to your bank about obtaining a traditional credit card with a low balance.
• Store credit cards like Canadian Tire and Home Depot are typically easier to qualify due to the very high interest rate charged on balances. If you pay the balance in full every month, the interest rate is irrelevant.

If you are struggling with debt, don’t let concerns about the impact on your credit report stop you from taking steps for a permanent solution. Reach out to the trustees at Taylor Leibow Inc. today.